A new survey from Voya Financial has revealed that 49 percent of caregivers feel their caregiving duties have had a significant impact on their ability to save for retirement.
The findings underscore the broader financial challenges faced by caregivers, with many also struggling to prepare for emergencies, manage healthcare costs, and maintain mental well-being.
According to the survey, more than half of caregivers reported difficulties in saving for unexpected expenses (52 percent) and healthcare costs (51 percent), with an equal number indicating that their caregiving responsibilities have weighed on their mental health. The study hints that the impact of caregiving on retirement hits harder for members of the non-white population, as 28 percent of Asian, Hispanic, and Black Americans said their duties have had a severe or major effect on their retirement savings, compared to just 19 percent of white Americans.
“Caregiving comes with significant emotional challenges, and the financial strains are often a concern,” Carole Mendoza, vice president of benefits at Voya Financial, said in a statement. "In fact, Voya’s research found that 27 percent of caregivers changed jobs to provide care."
In addition to retirement and emergency savings, the survey found that caregiving has implications for other financial decisions. Forty percent of respondents said their caregiving responsibilities impacted their ability to purchase a home, while 38 percent indicated difficulty keeping up with mortgage or rent payments. For 35 percent, childcare expenses and costs associated with having children were also affected, and 30 percent faced challenges in covering college expenses or student loans for themselves or their dependents.
Once again, non-white groups reported higher levels of financial and emotional stress. Among Asian, Hispanic, and Black American caregivers, 66 percent said their mental well-being was affected by caregiving duties, compared to 43 percent of white caregivers. Similarly, 64 percent of minority caregivers cited difficulties with healthcare costs, compared to 44 percent of their white counterparts.
Voya’s findings suggest that workplace benefits could help ease some of those burdens. More than half of caregivers (53 percent) said they would likely use caregiver resources provided by their employers, including educational articles, planning document templates, and checklists.
"Benefits such as health savings accounts, legal insurance, disability, and long-term care insurance remain an untapped tool for retaining caregiving employees,” Mendoza added.
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